Which type of business entity legally has no separate existence from its owner?

A sole proprietorship is a type of business entity that legally has no separate existence from its owner. This means that the business and the owner are considered to be one and the same in the eyes of the law. This characteristic leads to certain implications for taxation and liability; for instance, the income generated by the business is reported on the owner's personal tax return, and the owner is personally liable for all debts and obligations incurred by the business.

In contrast, other business entities such as corporations and cooperatives exist separately from their owners. Corporations, for example, are distinct legal entities that can own property, enter contracts, and be sued independently of their shareholders. Similarly, cooperatives function as separate legal entities formed to benefit their members, who are usually both the owners and the customers of the business.

Additionally, a general partnership also constitutes a separate entity, albeit not as distinct as a corporation. In a general partnership, the partners share personal liability for the debts of the business, but the partnership itself is still recognized as a separate legal entity, unlike a sole proprietorship where the business does not have an existence apart from the owner. Thus, the defining characteristic of a sole proprietorship is its lack of legal separation from its owner.